Agenda item

To receive a report from the Deputy Chief Executive (S151 Officer) on the 2025/2026 Budget Update.

The Cabinet had before it a report * from the Deputy Chief Executive (S151) presenting the 2025/2026 draft Budget Report.

The Cabinet Member for Governance, Finance and Risk outlined the contents of the report with particular reference to the following:

• The main change for the General Fund reflected the announcement of the Provisional Funding Settlement, which gave proposed allocations for key grant funding streams. There were more changes in grants for 2025/26 than this Council had seen in recent years, reflecting the views of a new Government. In some cases, this Council had lost funding, most notably through the cessation of the Rural Services Delivery Grant, however, this was partially offset by an increase in the Funding Floor. Overall the grant element of the Council’s settlement was reduced by £297k year-on-year.
• In addition to the settlement, a number of other announcements were made that had financial consequences. This included the calculation mechanism for the changes in Employers National Insurance Contributions. The initial indication was that the funding was only likely to cover about a third of the additional costs.
• There was better news for Homelessness Funding which indicated an additional £270k for 2025/26.
• There was also the long awaited announcement on Extended Producer Responsibility funding where the minimum allocation would be £927k for 2025/26. This funding would then be subsumed into future year’s settlements. There was a knock-on impact on recycling credits that was not yet clear. It should also be noted that this was the final year of the Devon Waste Shared Saving Agreement.
• Other proposed changes to the 2025/26 Budget: Housing Revenue Account recharges had increased by £35k based on 2025/26 salary costs, and a further £150k increase was recommended for Leisure Income.
• The Housing Revenue Account budget previously projected a shortfall of £515k.  Following a detailed review there had been a number of adjustments resulting in a proposed balanced budget.
• The other element of this report related to the proposed Fees and Charges for 2025/26. Appendix 2 was to approve the proposed fees, appendix 3 included fees for noting as they were either previously specifically agreed, or were being increased by inflation under previous broad approvals.

Discussion took place with regards to:

• The Building Development charges had increased significantly. £870 for a loft conversion was high.
• The operation of Joint Building control in partnership with North Devon and in competition with the private sector.
• The difficulties with budgeting each year, the budget was fair for the services that the Council provided.
• The refurbishment of Culm Valley Leisure Centre the equipment available, including squash court was to high standards.

RESOLVED that:

1. To note and approve the revised position.

2. To approve and note the comprehensive Fees & Charges included in Appendices 2 and 3.

(Proposed by Cllr J Buczkowski and seconded by Cllr S Clist)

Reason for Decision:

None directly arising from this report, although there was a legal obligation to balance the budget. There were legal implications arising from any future consequential decisions to change service provision, but those would be assessed at the time.

Note: * Report previously circulated.